We’re after companies that trade at lower prices than their true worth.

We take a detailed look at a company’s business model, financial accounts, past performance, management and competition to determine its intrinsic value.

We then compare that to the market’s view, reflected in the price of its shares and the yield on its bonds. We only invest if we believe a security offers meaningful value for money.

Successful owners don’t quit when challenges arise, and neither do we.

Stocks and bonds represent claims on a business, not just certificates. We assess each stock as a potential owner of the whole company, and each bond as a potential lender to the business. There’s a lot of short-term noise in the market. We ignore it, staying focused on a company’s intrinsic value. It can take up to five years or even longer for our views to play out. But as long as we have conviction, we stand by it.

You can’t outperform if you do the same as everyone else.

If negative news hits a company, investors often panic and sell securities at prices that are too low. In other cases, a company may perform well but that performance may not be reflected in the price of its securities. For the best long-term results, we must be opportunistic and seize potential in many forms.

Our hunt for undervalued shares and bonds takes us away from the crowd, resulting in portfolios that deviate substantially from their benchmarks.